• The Federal Reserve held interest rates steady at the end of its two-day meeting Wednesday.
• The Fed’s decision to remain on the sidelines still has far-reaching implications for almost all forms of borrowing as well as the returns you earn on your savings.
• From credit cards and mortgage rates to auto loans and savings accounts, here’s a look at how your wallet is impacted.

The  announced Wednesday it will leave  unchanged amid higher prices from President Donald Trump's tariff policies and weakening economic growth.

Federal Reserve Chair Jerome Powell "is sitting on a hornet's nest of headaches — in that situation, he is going to hold tight," said Brian Bethune, an economist and professor at Boston College.

Largely because of mixed economic signals and the United States' changing , uncertainty is "off the charts," Bethune said. "We are as close to a 'black swan' policy shock as you can get."

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With the Fed holding rates steady for now, consumers struggling under the weight of high prices and high  aren't getting much relief, experts say. 

The federal funds rate sets what banks charge each other for overnight lending, but also has a domino effect on almost all of the  Americans see every day.  

When the Fed hiked rates in 2022 and 2023, the interest rates on most consumer loans quickly followed suit. Even though the central bank  three times in 2024, those consumer rates are still elevated, and are mostly staying high, for now.

Five ways the Fed affects your wallet

1. Credit cards

Many  have a variable rate, so there's a direct connection to the Fed's benchmark.

With a rate cut likely postponed , the average credit card annual percentage rate has stayed just over 20% this year, according to Bankrate — not far from 2024's . Last year, banks  credit card interest rates to record levels and some issuers said they are .

At the same time, "more people are carrying debt because of higher prices," said Ted Rossman, senior industry analyst at Bankrate. Total credit card debt and average balances are also at .

2. Mortgages

Mortgage rates don't directly track the Fed, but are largely tied to Treasury yields and the economy. As a result, uncertainty over and worries about a possible recession are dragging those rates down slightly.

The average rate for a 30-year, fixed-rate mortgage is 6.91% as of May 6, while the 15-year, fixed-rate is 6.22%, according to Mortgage News Daily. 

Mortgage rates "are showing signs of life after a slow couple of years," said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion. 

But for potential home buyers, that's  of a decline to give the housing market a boost. "Many borrowers are reluctant to take on a loan at today's rates, particularly if they currently have a loan at a significantly lower rate," Raneri said.

3. Auto loans

are tied to several factors, but the Fed is one of the most significant.

With the Fed's benchmark holding steady, the average rate on a five-year new car loan was 7.1% in April, while the average auto loan rate for used cars is 10.9%, according to Edmunds. At the end of 2024, those rates were 6.6% and 10.8%, respectively.

With interest rates near historic highs and car  rising — along with pressure from Trump's 25% tariffs on imported vehicles — new-car shoppers are facing bigger monthly payments and an affordability crunch, according to Joseph Yoon, Edmunds' consumer insights analyst.

"Consumers continue to face a challenging market, now with added uncertainty of the tariff impact on their next vehicle purchase," Yoon said. "Prices and interest rates remain elevated, and there's no fast or easy answer as to how the tariffs will affect inventory levels — and therefore pricing — as buyers try to make sense of an increasingly complex shopping journey." 

4. Student loans

 are fixed for the life of the loan, so most borrowers are somewhat shielded from Fed moves and recent economic turmoil.

Interest rates for the upcoming school year will be based in part on the May auction of the , and are , according to higher education expert Mark Kantrowitz. Undergraduate students who took out direct federal student loans for the 2024-25 academic year are paying , up from 5.50% in 2023-24.

Borrowers with existing federal  balances won't see their rates change, adding to the other  some now face along with fewer  options.

5. Savings

While the central bank has no direct influence on deposit rates, the yields tend to be correlated to changes in the target federal funds rate.

"Continued high interest rates are discouraging for those with debt but awesome for savers," said Matt Schulz, chief credit analyst at LendingTree. 

Yields for CDs and high-yield savings accounts may not be as high as they were a year ago, but the Fed's rate cut pause has left them well above the annual rate of inflation, Schulz said. Top-yielding online  accounts currently pay 4.5%, on average, according to Bankrate.

"With all of the uncertainty in the economy right now, it makes sense for people to act now to lock in CD rates and take advantage of current high-yield savings account returns while they still can," Schulz said.